Wednesday, 6 February 2013

Come back, Sid

Vince Cable's idea of a popular privatisation of the government's 82% stake in RBS is not that daft. If discounted shares, currently at around the 330 mark, were available to UK taxpayers and pensioners at say 220, limited to 500 shares, offering the prospect of an immediate windfall even if sold straight away, a whole new generation may experience the 'Sid' effect. The British gas privatisation had effects far beyond the transfer itself. It brought the experience of share ownership to millions, who for the first time regularly scanned the financial page of the Sun and Mirror; it boosted home ownership, self-employment, investment and business confidence. Those who took their profit straight away and put it straight back into economic circulation also boosted GDP. And it made the government popular. Whether it would be worth the 20 seats held as Rotten Boroughs under our corrupt electoral system by Cameron's opponents is the question; and if so, whether a well-timed 'Sid' privatisation in the early Spring of 2015 is now on the cards ....